GOVT-2305-Exam 4 Policy
(FINAL) Comprehensive
Questions with Verified
Answers Graded A+
This is a theory that advocates cutting taxes and deregulating business to stimulate the
economy. - Answer: Supply-side economic approach.
This is a theory that holds that government should take a hands-off stance towards the markets.
- Answer: Laissez-fair economic approach.
This is a theory that says the government's proper economic role is to control the rate of
inflation by controlling the amount of money in circulation. - Answer: Monetarism.
This is a theory that recommends that, during recessions, the Fed should increase its spending
and decrease taxes and during a boom it should cut spending and increase taxes. - Answer:
Keynesian economic approach.
Which of the following is not a tool used for domestic policy? - Answer: Monetarism.
Which event of the Cold War resulted in the tense standoff between U.S. and Soviet forces that
involved a potential escalation in nuclear conflict? - Answer: The Cuban Missile Crisis.
(FINAL) Comprehensive
Questions with Verified
Answers Graded A+
This is a theory that advocates cutting taxes and deregulating business to stimulate the
economy. - Answer: Supply-side economic approach.
This is a theory that holds that government should take a hands-off stance towards the markets.
- Answer: Laissez-fair economic approach.
This is a theory that says the government's proper economic role is to control the rate of
inflation by controlling the amount of money in circulation. - Answer: Monetarism.
This is a theory that recommends that, during recessions, the Fed should increase its spending
and decrease taxes and during a boom it should cut spending and increase taxes. - Answer:
Keynesian economic approach.
Which of the following is not a tool used for domestic policy? - Answer: Monetarism.
Which event of the Cold War resulted in the tense standoff between U.S. and Soviet forces that
involved a potential escalation in nuclear conflict? - Answer: The Cuban Missile Crisis.
